Robert Shiller: Surveying the economic horizon

In this video interview, courtesy of The McKinsey Quarterly, economist Robert Shiller discusses four aspects of the current crisis: regulating for financial innovation, reducing trust in models, redesigning institutions, and the time line for turnaround. His perspectives are informed in part through his research that psychology – particularly an understanding of human irrationality – can play a key role in explaining economic breakdowns and exploring effective solutions.

This interview was conducted by Rik Kirkland, McKinsey’s director of publishing, in March 2009. It was taped at Yale University.